Gulfstream International Group Inc.Gulfstream International Airlines flies Beechcraft 19-seat turboprop planes like this one out of Cleveland for Continental Airlines under the Continental Connection name.

The restructuring will not affect operations, and Gulfstream will honor all tickets and reservations, the company said Thursday.

Gulfstream has asked the bankruptcy court to allow it to continue paying its 600 employees all wages and benefits. The company doesn't predict any layoffs "directly related to this filing," it said in a statement.

Gulfstream flies 19-seat Beechcraft prop planes under the Continental Connection brand from Cleveland to six cities -- Jamestown, N.Y.; Franklin, Bradford and Dubois, Pa.; and Parkersburg and Lewisburg, W.Va. It is part of the Department of Transportation's "essential air service program" that subsidizes service to communities that might otherwise not have it.

Gulfstream has between seven and 11 departures a day from Cleveland Hopkins International Airport.

In an email, Continental said Continental Connection flights operated by Gulfstream will continue to fly as scheduled. "Customers booked on these flights should proceed with their travel as planned."

Gulfstream said Thursday that it has arranged up to $5 million in debtor-in-possession financing from Victory Park Capital Advisors, subject to court approval. The financing will be a first step in securing long-term financing to allow Gulfstream to buy the 23-plane fleet it now leases, and position the company for growth, President and Chief Executive David Hackett said in the statement.

The combination of borrowing in recent years to cope with high fuel costs plus declining traffic made it too difficult for Gulfstream to meet its debt obligations, Hackett said.

The company has received strong interest from several potential investors, but all "noted the need to restructure the balance sheet" before making investments, Hackett said.

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